Bill Text: TX HB58 | 2017 | 85th Legislature 1st Special Session | Introduced
Bill Title: Relating to the establishment of a tax credit scholarship and educational expense assistance program.
Spectrum: Partisan Bill (Republican 8-0)
Status: (Introduced - Dead) 2017-07-20 - Referred to Public Education [HB58 Detail]
Download: Texas-2017-HB58-Introduced.html
| By: Simmons | H.B. No. 58 | |
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| relating to the establishment of a tax credit scholarship and | ||
| educational | ||
| expense assistance program. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| ARTICLE 2. TAX CREDIT SCHOLARSHIP AND EDUCATIONAL EXPENSE | ||
| ASSISTANCE PROGRAM | ||
| SECTION 2.01. Subtitle B, Title 3, Insurance Code, is | ||
| amended by adding Chapter 230 to read as follows: | ||
| CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO | ||
| CERTAIN EDUCATIONAL ASSISTANCE ORGANIZATION | ||
| SUBCHAPTER A. GENERAL PROVISIONS | ||
| Sec. 230.001. DEFINITIONS. In this chapter: | ||
| (1) "Educational assistance organization" means an | ||
| organization that: | ||
| (A) has the ability according to the | ||
| organization's charter to award scholarships to or pay educational | ||
| expenses for eligible students in: | ||
| (i) public elementary or secondary schools | ||
| located in this state; or | ||
| (ii) nonpublic elementary or secondary | ||
| schools located in this state: | ||
| (a) that meet the requirements of | ||
| Section 230.052; | ||
| (b) at which a student may fulfill | ||
| this state's compulsory attendance requirements; and | ||
| (c) that are not in violation of the | ||
| federal Civil Rights Act of 1964 (42 U.S.C. Section 2000a et seq.); | ||
| and | ||
| (B) uses part of its annual revenue for the | ||
| purpose provided by Paragraph (A). | ||
| (2) "State premium tax liability" means any liability | ||
| incurred by an entity under Chapter 221, 222, or 224. | ||
| Sec. 230.002. RULES; PROCEDURES. (a) The comptroller | ||
| shall adopt rules and procedures to implement, administer, and | ||
| enforce this chapter. | ||
| (b) A rule adopted under Subsection (a) is binding on an | ||
| organization that applies for certification as an educational | ||
| assistance organization, an entity that applies for a credit, and a | ||
| state or local governmental entity, including a political | ||
| subdivision, as necessary to implement, administer, and enforce | ||
| this chapter. | ||
| SUBCHAPTER B. SCHOLARSHIP AND EDUCATIONAL EXPENSE ASSISTANCE | ||
| PROGRAM | ||
| Sec. 230.051. SELECTION OF CERTIFIED EDUCATIONAL | ||
| ASSISTANCE ORGANIZATIONS. (a) An organization may apply to the | ||
| comptroller for certification as a certified educational | ||
| assistance organization during an application period provided by | ||
| the comptroller. | ||
| (b) To be eligible for certification, the organization: | ||
| (1) must: | ||
| (A) be exempt from federal tax under Section | ||
| 501(a) of the Internal Revenue Code of 1986 by being listed as an | ||
| exempt organization in Section 501(c)(3) of that code; | ||
| (B) be in good standing with the state; | ||
| (C) be located in the state; | ||
| (D) of the organization's annual revenue from | ||
| contributions that are designated for scholarships or educational | ||
| expense assistance for eligible students under this chapter, | ||
| allocate: | ||
| (i) at least 75 percent for scholarships | ||
| for eligible students to attend nonpublic schools; | ||
| (ii) at least 15 percent for assistance for | ||
| educational expenses, including tuition, transportation, and | ||
| instructional materials and other supplies, and for other related | ||
| educational expense assistance as described by this section; and | ||
| (iii) not more than 10 percent for | ||
| administrative expenses; | ||
| (E) award scholarships and assistance for | ||
| qualifying educational expenses to eligible students who | ||
| demonstrate the greatest financial and academic need; | ||
| (F) agree to give each donor a receipt for money | ||
| contributed to the organization that includes the name of the | ||
| organization, the name of the donor, the amount of the | ||
| contribution, the information required by Section 230.054(c), and | ||
| any other information required by the comptroller; | ||
| (G) demonstrate experience and technical | ||
| expertise in: | ||
| (i) accepting, processing, and tracking | ||
| applications for scholarships or educational expense assistance; | ||
| and | ||
| (ii) awarding scholarships to students in | ||
| primary or secondary schools; | ||
| (H) agree to be independently audited on an | ||
| annual basis and file the audit with the comptroller; and | ||
| (I) disburse within two academic years of receipt | ||
| contributions received from and designated by entities for | ||
| scholarships or educational expense assistance under this chapter; | ||
| and | ||
| (2) may not: | ||
| (A) award all scholarships under this chapter to | ||
| students who attend a particular school or pay educational expenses | ||
| incurred only at a particular school; | ||
| (B) provide to a student a scholarship in an | ||
| annual amount that exceeds the amount provided under Section | ||
| 230.055(a) or (b), unless the money used to provide the portion of | ||
| the scholarship in excess of that amount was contributed by a person | ||
| other than an entity that notifies the organization under Section | ||
| 230.054(c) that the entity may apply for a tax credit for the | ||
| contribution; and | ||
| (C) provide to a student educational expense | ||
| assistance in excess of the amount provided under Section | ||
| 230.055(c) per academic year, unless the money used to provide the | ||
| portion of the assistance in excess of that amount was contributed | ||
| by a person other than an entity that notifies the organization | ||
| under Section 230.054(c) that the entity may apply for a tax credit | ||
| for the contribution, including assistance for: | ||
| (i) facility fees; | ||
| (ii) instructional materials; | ||
| (iii) school supplies; | ||
| (iv) tutoring; | ||
| (v) academic after-school programs; | ||
| (vi) school or lab fees; and | ||
| (vii) transportation expenses, including | ||
| the cost to transfer from one public school to another. | ||
| (c) The comptroller shall certify one organization as the | ||
| primary certified educational assistance organization and one | ||
| organization as the secondary certified educational assistance | ||
| organization. The comptroller shall select the organizations to | ||
| certify as the primary and secondary certified educational | ||
| assistance organizations from among the organizations that apply | ||
| under Subsection (a) and meet the requirements of Subsection (b). | ||
| The comptroller has broad discretion in selecting the primary and | ||
| secondary certified educational assistance organizations. | ||
| (d) The comptroller shall notify all organizations that | ||
| apply under Subsection (a) of the comptroller's selections under | ||
| Subsection (c). | ||
| (e) The comptroller shall attempt to maintain one primary | ||
| and one secondary certified educational assistance organization at | ||
| all times. The comptroller shall provide an application period | ||
| under Subsection (a) as soon as practicable after the comptroller | ||
| learns there is, or is likely to be, a vacancy for the primary or | ||
| secondary certified educational assistance organization. | ||
| (f) The comptroller's selections under Subsection (c) are | ||
| final and are not appealable. | ||
| Sec. 230.0511. PERFORMANCE OF CERTIFIED EDUCATIONAL | ||
| ASSISTANCE ORGANIZATION POWERS AND DUTIES. (a) Except as provided | ||
| by Subsection (b), the organization certified as the primary | ||
| certified educational assistance organization shall perform the | ||
| powers and duties assigned to the certified educational assistance | ||
| organization under this chapter. | ||
| (b) The organization certified as the secondary certified | ||
| educational assistance organization shall perform the powers and | ||
| duties assigned to the certified educational assistance | ||
| organization under this chapter if: | ||
| (1) the organization certified as the primary | ||
| certified educational assistance organization has its | ||
| certification revoked; or | ||
| (2) the comptroller otherwise determines the | ||
| organization certified as the primary educational assistance | ||
| organization is unable to perform the powers and duties assigned to | ||
| the certified educational assistance organization under this | ||
| chapter. | ||
| (c) A reference in this chapter or other law to the | ||
| certified educational assistance organization means the | ||
| organization performing the powers and duties of the certified | ||
| educational assistance organization under Subsection (a) or (b). | ||
| Sec. 230.0512. INFORMATION REGARDING SCHOLARSHIPS. (a) | ||
| The certified educational assistance organization shall make | ||
| information about scholarships under this chapter available to | ||
| parents of a student who is eligible to apply for assistance under | ||
| Section 230.053(a)(3)(E) through the organization's Internet | ||
| website. | ||
| (b) The information made available must include a notice | ||
| that: | ||
| (1) states that a nonpublic school is not subject to | ||
| laws regarding the provision of educational services in the same | ||
| manner as a public school, and a student with a disability attending | ||
| a nonpublic school may not receive the services a student with a | ||
| disability attending a public school is entitled to receive under | ||
| federal and state law; and | ||
| (2) provides information regarding rights to which a | ||
| student with a disability is entitled under federal and state law if | ||
| the student attends a public school, including: | ||
| (A) rights provided under the Individuals with | ||
| Disabilities Education Act (20 U.S.C. Section 1400 et seq.), | ||
| including: | ||
| (i) an individualized education program; | ||
| (ii) educational services provided in the | ||
| least restrictive environment; | ||
| (iii) instruction from certified teachers; | ||
| (iv) due process hearings to ensure proper | ||
| and full implementation of an individualized education program; | ||
| (v) transition and planning services; and | ||
| (vi) supplementary aids and services; | ||
| (B) rights provided under Subchapter A, Chapter | ||
| 29, Education Code; and | ||
| (C) other rights provided under federal or state | ||
| law. | ||
| Sec. 230.0513. REPORTING NUMBER OF SCHOLARSHIP RECIPIENTS. | ||
| (a) Not later than October 1 of each year, the certified | ||
| educational assistance organization shall notify the commissioner | ||
| of education and the Legislative Budget Board of the likely number | ||
| of students who will enroll in a nonpublic school instead of a | ||
| public school using scholarships under this chapter, disaggregated | ||
| by the school district or open-enrollment charter school the | ||
| students would otherwise attend. | ||
| (b) Not later than March 1 of each year, the certified | ||
| educational assistance organization shall provide final | ||
| information to the commissioner of education and the Legislative | ||
| Budget Board regarding the actual number of students described by | ||
| Subsection (a), disaggregated in the same manner as the initial | ||
| information under that subsection. | ||
| Sec. 230.052. NONPUBLIC SCHOOL REQUIREMENTS. The certified | ||
| educational assistance organization may not award scholarships to | ||
| or pay educational expenses for eligible students enrolled in a | ||
| nonpublic school unless the nonpublic school executes a notarized | ||
| affidavit, with supporting documents, concerning the school's | ||
| qualification for scholarships and educational expense assistance | ||
| for eligible students who receive assistance from the certified | ||
| educational assistance organization, including evidence of: | ||
| (1) accreditation by the Texas Education Agency or by | ||
| an organization that is recognized by the Texas Private School | ||
| Accreditation Commission; | ||
| (2) annual administration of a nationally | ||
| norm-referenced assessment instrument or the appropriate | ||
| assessment instrument required under Section 39.023, Education | ||
| Code; | ||
| (3) valid certificate of occupancy; and | ||
| (4) policy statements regarding: | ||
| (A) admissions; | ||
| (B) curriculum; | ||
| (C) safety; | ||
| (D) food service inspection; and | ||
| (E) student to teacher ratios. | ||
| Sec. 230.053. ELIGIBILITY OF STUDENTS; INCLUSION IN | ||
| CALCULATION OF EQUALIZED WEALTH LEVEL. (a) A student is eligible | ||
| to apply to the certified educational assistance organization for a | ||
| scholarship or educational expense assistance under this chapter | ||
| if: | ||
| (1) the student resides in a public school district | ||
| located in whole or in part in a county; and | ||
| (2) the student: | ||
| (A) is eligible under Section 29.003, Education | ||
| Code, to participate in a school district's special education | ||
| program; or | ||
| (B) covered by Section 504, Rehabilitation Act of | ||
| 1973 (29 U.S.C. Section 794). | ||
| (b) A student may continue to receive assistance under this | ||
| chapter until the earlier of the date the student graduates from | ||
| high school or the student's 22nd birthday if the student: | ||
| (1) meets the requirements of Subsection (a)(1); and | ||
| (2) previously qualified under Subsections (a)(2) and | ||
| (3)(E). | ||
| (c) The certified educational assistance organization shall | ||
| award scholarships and educational expense assistance to eligible | ||
| students who apply in accordance with this chapter. | ||
| (d) The certified educational assistance organization shall | ||
| provide to each parent of a student with a disability who applies | ||
| for a scholarship or educational expense assistance under this | ||
| chapter a written copy of the notice described by Section | ||
| 230.0512(b). Before the organization may award a scholarship or | ||
| educational expense assistance to the student, the student's parent | ||
| must sign and return the notice to the organization. | ||
| Sec. 230.054. CREDIT FOR CONTRIBUTIONS. (a) An entity may | ||
| apply for a credit under this chapter only for money contributed to | ||
| the certified educational assistance organization and designated | ||
| for scholarships or educational expense assistance for eligible | ||
| students. | ||
| (b) An entity may not apply for a credit under this chapter | ||
| for a contribution made to the certified educational assistance | ||
| organization if: | ||
| (1) the entity requires that the contribution benefit | ||
| a particular person or school; or | ||
| (2) the contribution is designated to provide a | ||
| scholarship or educational expense assistance for an entity | ||
| employee or for a spouse or dependent of an entity employee. | ||
| (c) An entity shall notify the certified educational | ||
| assistance organization in writing when the entity makes a | ||
| contribution if the entity may apply for a tax credit under this | ||
| chapter for the contribution. An entity may not apply for a credit | ||
| for the contribution unless the entity provides the notification at | ||
| the time the contribution is made. The certified educational | ||
| assistance organization shall indicate on the receipt provided | ||
| under Section 230.051(b)(1)(F) that the entity made the | ||
| notification under this subsection. | ||
| Sec. 230.055. LIMIT ON AMOUNT OF SCHOLARSHIP OR EDUCATIONAL | ||
| EXPENSE ASSISTANCE. (a) Except as provided by Subsection (b), the | ||
| maximum scholarship amount the certified educational assistance | ||
| organization may award to a student under this chapter using money | ||
| contributed by an entity that notifies the organization under | ||
| Section 230.054(c) that the entity may apply for a tax credit for | ||
| the contribution may not exceed 75 percent of the state average | ||
| maintenance and operations expenditures per student for the | ||
| preceding state fiscal year. | ||
| (b) A student who receives a payment to an education savings | ||
| account under Section 29.358, Education Code, for a year is | ||
| eligible to receive for the same year a scholarship from the | ||
| certified educational assistance organization if the student is | ||
| eligible for that assistance. The maximum scholarship amount the | ||
| certified educational assistance organization may award to a | ||
| student to whom this subsection applies using money contributed by | ||
| an entity that notifies the organization under Section 230.054(c) | ||
| that the entity may apply for a tax credit for the contribution may | ||
| not exceed the sum of: | ||
| (1) the difference between the amount of the payment | ||
| under Section 29.358, Education Code, and the full tuition amount | ||
| for the student's nonpublic school; and | ||
| (2) a transportation allowance not to exceed $500. | ||
| (c) The maximum educational expense assistance the | ||
| certified educational assistance organization may award to a | ||
| student under this chapter using money contributed by an entity | ||
| that notifies the organization under Section 230.054(c) that the | ||
| entity may apply for a tax credit for the contribution may not | ||
| exceed $500 for the 2018 state fiscal year, increased by five | ||
| percent each subsequent year. | ||
| Sec. 230.056. REVOCATION. (a) The comptroller shall | ||
| revoke the certification provided under Section 230.051 if the | ||
| comptroller finds that the certified educational assistance | ||
| organization: | ||
| (1) is no longer eligible under Section 230.051; or | ||
| (2) intentionally and substantially violates this | ||
| chapter. | ||
| (b) The comptroller has broad discretion in determining | ||
| whether to revoke a certification under Subsection (a). | ||
| (c) The comptroller shall notify the certified educational | ||
| assistance organization in writing of the comptroller's decision to | ||
| revoke the organization's certification. If the comptroller | ||
| revokes the organization's certification, the comptroller shall | ||
| include in the notice of revocation the reasons for the revocation. | ||
| (d) If the comptroller revokes the certified educational | ||
| assistance organization's certification under Subsection (a), the | ||
| organization may request in writing a reconsideration of the | ||
| revocation not later than the 10th day after the date of the notice | ||
| under Subsection (c) or the revocation is final. | ||
| (e) An organization that requests a reconsideration under | ||
| Subsection (d) may submit to the comptroller not later than the 30th | ||
| day after the date the request for reconsideration is submitted | ||
| additional information and documents to support the organization's | ||
| request for reconsideration. | ||
| (f) The comptroller's reconsideration of a revocation under | ||
| this section is not a contested case under Chapter 2001, Government | ||
| Code. The comptroller's decision on a request for reconsideration | ||
| of a revocation is final and is not appealable. | ||
| (g) This section does not create a cause of action to | ||
| contest a decision of the comptroller to revoke the certified | ||
| educational assistance organization's certification under this | ||
| chapter. | ||
| (h) Revocation of a certification under this section does | ||
| not affect the validity of a tax credit relating to a contribution | ||
| made before the date of revocation. | ||
| Sec. 230.057. REPORT OF NET SAVINGS TO PUBLIC EDUCATION. | ||
| (a) In this section, "net savings" means any positive difference in | ||
| a state fiscal year between: | ||
| (1) the amount by which state spending on public | ||
| education for that year is reduced as a result of students receiving | ||
| scholarships and educational expense assistance from the certified | ||
| educational assistance organization under this chapter; and | ||
| (2) the amount by which state revenue derived from | ||
| Chapters 221, 222, and 224 is reduced as a result of tax credits | ||
| under this chapter. | ||
| (b) Not later than December 31 of each even-numbered year, | ||
| the comptroller shall determine the amount of net savings for the | ||
| previous state fiscal biennium and make available to the public a | ||
| report of that amount of savings. | ||
| SUBCHAPTER C. CREDIT | ||
| Sec. 230.101. CREDIT. An entity may apply for a credit | ||
| against the entity's state premium tax liability in the amount and | ||
| under the conditions and limitations provided by this chapter. The | ||
| comptroller shall award credits as provided by Section 230.103. | ||
| Sec. 230.102. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a) | ||
| Subject to Subsections (b) and (c), the amount of an entity's credit | ||
| is equal to the lesser of the amount of the qualifying contributions | ||
| made to the certified educational assistance organization or 50 | ||
| percent of the entity's state premium tax liability. | ||
| (b) The total amount of tax credits that may be awarded | ||
| under this chapter for each state fiscal year may not exceed $25 | ||
| million. | ||
| (c) The comptroller by rule shall prescribe procedures by | ||
| which the comptroller may allocate credits under this chapter. The | ||
| procedures must provide that credits are allocated on a first-come, | ||
| first-served basis, based on the date the contribution was | ||
| initially made. | ||
| (d) The comptroller may require an entity to notify the | ||
| comptroller of the amount the entity intends or expects to apply for | ||
| under this chapter before the beginning of a state fiscal year or at | ||
| any other time required by the comptroller. | ||
| Sec. 230.103. APPLICATION FOR CREDIT. (a) An entity must | ||
| apply for a credit under this chapter on or with the tax return for | ||
| the taxable year during which the qualifying contributions were | ||
| made and submit with the application each receipt issued under | ||
| Section 230.051(b)(1)(F) that includes the information required by | ||
| Section 230.054(c). | ||
| (b) The comptroller shall adopt a form for the application | ||
| for the credit. An entity must use this form in applying for the | ||
| credit. | ||
| (c) The comptroller may award a credit to an entity that | ||
| applies for the credit under Subsection (a) if the entity is | ||
| eligible for the credit and the credit is available under Section | ||
| 230.102(b). The comptroller has broad discretion in determining | ||
| whether to grant or deny an application for a credit. | ||
| (d) The comptroller shall notify an entity in writing of the | ||
| comptroller's decision to grant or deny the application under | ||
| Subsection (a). If the comptroller denies an entity's application, | ||
| the comptroller shall include in the notice of denial the reasons | ||
| for the comptroller's decision. | ||
| (e) If the comptroller denies an entity's application under | ||
| Subsection (a), the entity may request in writing a reconsideration | ||
| of the application not later than the 10th day after the date of the | ||
| notice under Subsection (d). If the entity does not request a | ||
| reconsideration of the application on or before that date, the | ||
| comptroller's decision is final. | ||
| (f) An entity that requests a reconsideration under | ||
| Subsection (e) may submit to the comptroller not later than the 30th | ||
| day after the date the request for reconsideration is submitted | ||
| additional information and documents to support the entity's | ||
| request for reconsideration. | ||
| (g) The comptroller's reconsideration of an application | ||
| under this section is not a contested case under Chapter 2001, | ||
| Government Code. The comptroller's decision on a request for | ||
| reconsideration of an application is final and is not appealable. | ||
| (h) This section does not create a cause of action to | ||
| contest a decision of the comptroller to deny an application for a | ||
| credit under this chapter. | ||
| Sec. 230.104. ASSIGNMENT PROHIBITED; EXCEPTION. An entity | ||
| may not convey, assign, or transfer the credit allowed under this | ||
| chapter to another entity unless all of the assets of the entity are | ||
| conveyed, assigned, or transferred in the same transaction. | ||
| Sec. 230.105. NOTICE OF AVAILABILITY OF CREDIT. The | ||
| comptroller shall provide notice of the availability of the credit | ||
| under this chapter on the comptroller's Internet website, in the | ||
| instructions for insurance premium tax report forms, and in any | ||
| notice sent to an entity concerning the requirement to file an | ||
| insurance premium tax report. | ||
| SECTION 2.02. An entity may apply for a credit under Chapter | ||
| 230, Insurance Code, as added by this article, only for an | ||
| expenditure made on or after the effective date of this article. | ||
| SECTION 2.03. Not later than February 15, 2018, the | ||
| comptroller of public accounts shall adopt rules as provided by | ||
| Section 230.002(a), Insurance Code, as added by this article. | ||
| SECTION 2.04. The comptroller of public accounts shall make | ||
| the initial determination of net savings and report regarding that | ||
| savings as required by Section 230.057, Insurance Code, as added by | ||
| this article, not later than December 31, 2020, based on the state | ||
| fiscal biennium ending August 31, 2019. | ||
| SECTION 2.05. This article applies only to a report | ||
| originally due on or after the effective date of this article. | ||
| SECTION 2.06. This article takes effect January 1, 2018. | ||
| ARTICLE 3. JUDICIAL REVIEW | ||
| SECTION 3.01. (a) The constitutionality and other validity | ||
| under the state or federal constitution of all or any part of | ||
| Subchapter J, Chapter 29, Education Code, as added by this Act, or | ||
| Chapter 230, Insurance Code, as added by this Act, may be determined | ||
| in an action for declaratory judgment in a district court in Travis | ||
| County under Chapter 37, Civil Practice and Remedies Code, except | ||
| that this section does not authorize an award of attorney's fees | ||
| against this state and Section 37.009, Civil Practice and Remedies | ||
| Code, does not apply to an action filed under this section. This | ||
| section does not authorize a taxpayer suit to contest the denial of | ||
| a tax credit by the comptroller of public accounts. | ||
| (b) An appeal of a declaratory judgment or order, however | ||
| characterized, of a district court, including an appeal of the | ||
| judgment of an appellate court, holding or otherwise determining | ||
| that all or any part of Subchapter J, Chapter 29, Education Code, as | ||
| added by this Act, or Chapter 230, Insurance Code, as added by this | ||
| Act, is constitutional or unconstitutional, or otherwise valid or | ||
| invalid, under the state or federal constitution is an accelerated | ||
| appeal. | ||
| (c) If the judgment or order is interlocutory, an | ||
| interlocutory appeal may be taken from the judgment or order and is | ||
| an accelerated appeal. | ||
| (d) A district court in Travis County may grant or deny a | ||
| temporary or otherwise interlocutory injunction or a permanent | ||
| injunction on the grounds of the constitutionality or | ||
| unconstitutionality, or other validity or invalidity, under the | ||
| state or federal constitution of all or any part of Subchapter J, | ||
| Chapter 29, Education Code, as added by this Act, or Chapter 230, | ||
| Insurance Code, as added by this Act. | ||
| (e) There is a direct appeal to the Texas Supreme Court from | ||
| an order, however characterized, of a trial court granting or | ||
| denying a temporary or otherwise interlocutory injunction or a | ||
| permanent injunction on the grounds of the constitutionality or | ||
| unconstitutionality, or other validity or invalidity, under the | ||
| state or federal constitution of all or any part of Subchapter J, | ||
| Chapter 29, Education Code, as added by this Act, or Chapter 230, | ||
| Insurance Code, as added by this Act. | ||
| (f) The direct appeal is an accelerated appeal. | ||
| (g) This section exercises the authority granted by Section | ||
| 3-b, Article V, Texas Constitution. | ||
| (h) The filing of a direct appeal under this section will | ||
| automatically stay any temporary or otherwise interlocutory | ||
| injunction or permanent injunction granted in accordance with this | ||
| section pending final determination by the Texas Supreme Court, | ||
| unless the supreme court makes specific findings that the applicant | ||
| seeking such injunctive relief has pleaded and proved that: | ||
| (1) the applicant has a probable right to the relief it | ||
| seeks on final hearing; and | ||
| (2) the applicant will suffer a probable injury that | ||
| is imminent and irreparable, and that the applicant has no other | ||
| adequate legal remedy. | ||
| (i) An appeal under this section, including an | ||
| interlocutory, accelerated, or direct appeal, is governed, as | ||
| applicable, by the Texas Rules of Appellate Procedure, including | ||
| Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1), | ||
| 38.6(a) and (b), 40.1(b), and 49.4. | ||
| ARTICLE 4. EFFECTIVE DATE | ||
| SECTION 4.01. Except as otherwise provided by this Act: | ||
| (1) this Act takes effect immediately if it receives a | ||
| vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution; and (2) if | ||
| this Act does not receive the vote necessary for immediate effect, | ||
| this Act takes effect 91 days after the last day of the legislative | ||
| session. | ||
